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INTERNATIONAL JOURNAL OF INNOVATIONS IN APPLIED SCIENCES & ENGINEERINGInternational Peer Reviewed (Refereed), Open Access Research Journal (By Aryavart International University, India) E-ISSN:2454-9258 | P-ISSN:2454-809X | Estd Year: 2015 Impact Factor(2021): 5.246 | Impact Factor(2022): 5.605 |
Dev Sheoran
Vol. 8, Jan-Dec 2022
Page Number: 227 - 235
Abstract:
Blockchain technology has rapidly evolved and significantly disrupted traditional financial systems. Smart contracts, a core feature of blockchain, offer automated, transparent, and immutable solutions for trade settlements. Traditional trade settlement systems are plagued by inefficiencies, delays, high operational costs, and susceptibility to fraud due to their reliance on intermediaries and manual processes. Blockchain-based smart contracts address such issues by providing automated settlement, transparency, and reduced dependency on third parties. This research analyzes the potential for blockchain-based smart contracts in altering the process of automated trade settlements, including the features, frameworks for implementation, and real-life applications. Additionally, it presents the challenges and limitations associated with their adoption, such as scalability, legal recognition, and interoperability with legacy systems. By analyzing existing implementations and suggesting more advanced frameworks, the paper works towards the understanding and development of blockchain-based solutions for trade settlement. It offers possibilities of revolutionary applicability in the global trade ecosystem. Further advances in scalability and regulatory frameworks, alongside growing standardization, are needed to further develop this revolutionary technology.